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Car buying tips
Due to some unfortunate events, I'm forced to purchase a "new" car. I don't have a very good credit rating, but have been able to get a 72 month loan ($12,700) at 12% interest, at a local dealership.
I've never purchased used or new from a dealership. I went in tonight and priced out a car, and had a bad experience dealing with the [censored] sucking salesman. Needless to say, I held my own. I still felt a little uncomfortable though. Next time I'd like to go in and own the son of a bitch who's haggling with me. Tips from experienced buyers/posters would be awesome. Share your tips, hints, and tricks to getting the best deal, and getting the car you want for the price you want. |
Re: Car buying tips
I hope someone responds to your post. I'm going to be in the market for a used car pretty soon and wouldn't mind tips on getting the price I want. Does anyone know if dealerships are willing to negotiate much when it comes to used cars?
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Re: Car buying tips
I think the guys in EDF would be able to help you best.
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Re: Car buying tips
about 10 years ago I was looking for a 2 door 95 tahoe.
I found one at a local chevy dealer. They wanted $25k for the tahoe and offered me $2k on my explorer. With tax and title it came out to around $25k. It was white with a maroon interior, which I really didn't care for and I told them and tried to go away, but they insisted I made an offer. So I offered them $15k plus my explorer. They bitched and moaned and said make a real offer, so I said $16k. They balked so I asked for my keys. They said they couldn't find them. So I pulled out my phone and started dialing. They asked who I was calling, I said the police to report a stolen vehicle. They were not amused and miraculously found my keys. They asked me to make another offer so I said 17k. They made me wait for 10 minutes and said ok, they accept. I then said, that's fine, but that price includes tax title and license. They bitched and moaned but finally accepted. So the moral of the story is 1 wait till the end of the month, preferably at the end of the quarter or year, they are ready to deal. 2 Be prepared to walk away. 3 make ridiculous offers, they might just accept one. 4 After they accept the deal, make them throw something else in, like taxes and title fees, or floormats |
Re: Car buying tips
Go to Edmunds.com and read their car buying stuff. A couple of
hours there will be worth plenty if you are buying a car. Also, if you are buying a used car, buy American. U.S. made cars tend to depreciate at twice the rate of Japanese cars which more than compensates for the quality difference. Just check the reliability and price of the particular car you like on Edmunds. |
Re: Car buying tips
I don't know much about getting the best deal, but if the best financing you can get is 6 years at 12%, you have bigger financial problems than getting the best deal.
There have been several new car threads in EDF and OOT recently. |
Re: Car buying tips
20 year lease with mandatory balloon payment to follow.
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Re: Car buying tips
12% is really ridiculous. Try going through a credit union for a better deal
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Re: Car buying tips
Go to the Consumer Reports website (I don't have the link in front of me). Pay them $12 (it might have gone up, I last used it in 2004) for a price report on the car you are interested in. It will tell you the actual dealer cost (including holdbacks) on the the car you are looking for. Now decided how much yout time is worth. If you offer them $500 above their cost (that might be less than invoice) they will probably take it. My last car I offered $450 above their cost and the firs dealer turned me down and the second dealer took it. If you have more time you can start at $100 below their cost and float that to each dealer and go to each dealer in your area with a little bit higher offer until you get them to accept it. They will try to tall you about advertising "fees" and such, just say no.
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Re: Car buying tips
What RR said.
The trick is to play one dealer off another. Shop around. Know what you want to spend (based on the CR research) and be willing to walk away if they won't meet or come close enough to your price. Be pleasant but assertive. Simply state that you have your research and this is where you'd like to begin negotiations. I've had good success with this method. I've had dealers call me crazy, complain that I was eating into their holdback, telling me that the numbers were wrong. I walked away from those places and dealt with the ones that treated me like a normal person doing business. Also, negotiate the sale price of the vehicle you're interested in first. Then decide on financing/lease, trade in, and any dealer-installed extras. Get the whole deal written up. If the finance guy tries to sell you rustproofing, extended warranties, or advertising, documentation, or other fees, say no and be prepared to walk away unless they agree to eat those fees. It works. |
Re: Car buying tips
[ QUOTE ]
be prepared to walk away [/ QUOTE ] This is the bottom line. And they will be playing you better than a three card monte mark in Times Square. There was a great article about a year ago, I think I got linked from 2+2 but am not sure. about anything... But is was by a guy who worked for a newspaper and spent 4 or 6 months working the car sales game. He wrote it up kind of funny, but there is NO FUN in the car sales game. They are a ruthless bunch willing to lie and cheat their way to a sale. I bought a new vehicle a few years back and the sales unit is telling me how these trucks NEVER break down, yada yada yada. 3 minutes later I am in the office with the large breasted, low cut, just plain got to old to work the pole anymore, finance manager who tells me " I'd hate to see something major go wrong and this extended warranty is only an additional $48 a month." or $3000 in their freaking pocket because you have to keep the vehicle more than 70K miles to even have it kick in. I'll try to googleize that guys article, it will help you. |
Re: Car buying tips
This thread makes me so sad.
I was so tickled when Saturn launched, and their model was "no haggling". They put a price tag on the car, with the rock-bottom number. I was SO hoping the industry would go that way. Saturn had to quickly abandon the plan. Nobody would buy a car without trying to haggle. They all WANTED to play these stupid games with the dealers. Everyone who ever told me about the car they just bought, universally boasted that they "got a great deal". Then I ask them one or two questions, and it quickly becomes apparent that they got a horrible deal. I guess my point is that for most people, thinking you got a good deal is more important than actually getting a good deal. I've read so much stuff on the car buying game, it would make your head spin. But I'm still horrible at it. At least I'm aware that I suck. |
Re: Car buying tips
Even if you're terrible, you can save a ton of money by doing two things. The first, as noted, always be ready to walk away. You gotta really feel it and know it or the dirty dogs will sense it and pull you back into suckersville. Second, go when the model years are changing over and buy last year's model.
There is little demand for last year's model when the new year has come out, the dealership is losing money on it every day(they don't get the cars out there for free), he'll have to sell it for less every week, and it's taking up space he could use for new product. Tell the dealership they can keep on wasting time and money on the lost cause of a car most customers would not want to buy and nobody would pay a premium for, or they can just get it out of their hair right now and move on to what's going to make them more money instead. Two winners. The other choice is there can be one loser and it won't be you, because you'll just get the same deal somewhere else. Keep in mind that the resale value will be even worse than usual for you as soon as you drive it off the lot. It's to do with cars you want to keep for a long time, not just a year or three. |
Re: Car buying tips
[ QUOTE ]
for most people, thinking you got a good deal is more important than actually getting a good deal. [/ QUOTE ] I sort of hoped Freakonomics delved into this subject. Not that their theories are at all earth shattering or even productive, but that the comparisons alone are entertaining. The reason why the Saturn model fails is because consumers (US consumers anyway) think the MSRP is fiction to begin with. Am I to think that the industry is being benevolent? Pshaw. I recall one near-bamboozle with my most recent vehicle purchase. I found a couple dealers with 4x4 F150's with 8 foot beds, 5.4L, XLT trim line, and the performance options I wanted. One had more doohickeys than the other, which didn't matter much to me. After a couple of weeks going back and forth with both dealers, the guy selling me the tricked out model was only a few bucks away from the guy selling a more basic model. I decided, dollars being equal, why not get the Bose system and the power windows, etc.? I got there and the guy had all the paperwork prepared. But the math didn't add up. He did the quick "here's our agreed-upon price" which appeared at the bottom, like a bottom line. Added to it were the rebate, my down payment, my trade in, etc. etc. etc. So instead of, say, $25K for the truck, he was writing up a $36K sale. I told him that I hadn't decided whether to trade my car in or not. I said I may want the cash rebate, as I hadn't settled on financing yet. Furthermore, I told the guy that based on the research I had shown him previously, that I wasn't negotiating down from the MSRP, but was starting with dealer cost and factoring in optional equipment in the plus column and rebates, dealer incentives, and holdback in the minus column. He said my math was wrong. I told him to have a nice day, went to the other dealer with the less-fancy truck, and got the sale price in writing, then discussed trade, rebate, financing. The number came out to within a couple hundred of my number (though I did settle for a drop in bedliner as opposed to a spray-on one and a cheapo tonneau cover instead of a hard top one). I compromised on options, the dealer compromised on dollars. I signed the deal. Be very wary of car dealer math. |
Re: Car buying tips
www.edmunds.com/caradvice.html has a lot of good carbuying advice.
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Re: Car buying tips
[ QUOTE ]
I hope someone responds to your post. I'm going to be in the market for a used car pretty soon and wouldn't mind tips on getting the price I want. Does anyone know if dealerships are willing to negotiate much when it comes to used cars? [/ QUOTE ] Step one: Either get really lucky as far as timing, or go in the very last day of their sales period. Step two: Find a guy that's just shy of his quota. (Some places keep boards up with names and stats, consider checking it.) Step three: Have a set price that you, under NO circumstance will go below. Step four: Enjoy your new cheap car. When I was in the market for a car last, I really wanted a Focus. I'd looked at a few and knew about how much they were worth. I went to this local Ford lot and saw a really nice one, it was 2 years newer than I thought. It was priced at around $12k. After a little amount of talk, the salesman was down to the blue book value (I later found out) of a touch over $10k. However, thinking that car was 2 years older, I was thinking it was worth $2k less than what he was offering. I felt like I was getting scammed and played the part well, mostly because I thought I was right, which I wasn't. However, as the day neared an end, and it became increasingly apparent to the sales guy that he'd make no money for his time, nor make his quota, if he didn't sell me the car for exactly what I wanted it for, he went and talked to the manager fellow. (He did this a few times, always coming back with "Nope, can't go that low". Which, of course, means he talked to no one. I've been in sales, I know that trick.) After about 10 minutes, he came back pleased, and let me know he could do it for $8k. I ended up not buying the car, mostly because I was broke and had a low paying job at the time, but I did take from that experience that you can get whatever you want if the timing is right, and you're a big enough prick. |
Re: Car buying tips
[ QUOTE ]
" I'd hate to see something major go wrong and this extended warranty is only an additional $48 a month." or $3000 in their freaking pocket because you have to keep the vehicle more than 70K miles to even have it kick in. [/ QUOTE ] This reminds me of politics right now. Using fear to get people to do or surrender something. In this case, money. |
Re: Car buying tips
It has worked really well for the Koreans. Cars are still unreliable enough that those 10-year warranties had some appeal. They were built into the price, but still, while you were not giving up money for a warranty specifically, you were indirectly, by deciding to buy a car you might otherwise never have considered.
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Re: Car buying tips
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12% is really ridiculous. Try going through a credit union for a better deal [/ QUOTE ] 12% might be a great rate if his credit is weak like OP stated. Credit Unions might be better but most are credit score based just like regular banks, especially to customers with no history with their CU. In my town you can get 5.99 for 72 months on 2004 or newer. If your score is 740 or better. A score of 550-600 would fetch a 13-18% rate. |
Re: Car buying tips
I've learned that I can do all the research and have everything thought out, but when I get there in person I still suck at negotiating. So I've swallowed my pride.
I have one or two friends who are really good at negotiating who I enlist to work out the actual deal for me on any large purchase. Then I'll buy dinner or a case the beer for our next get together. For some people that might be the best option. |
Re: Car buying tips
[ QUOTE ]
Go to the Consumer Reports website (I don't have the link in front of me). Pay them $12 (it might have gone up, I last used it in 2004) for a price report on the car you are interested in. It will tell you the actual dealer cost (including holdbacks) on the the car you are looking for. Now decided how much yout time is worth. If you offer them $500 above their cost (that might be less than invoice) they will probably take it. My last car I offered $450 above their cost and the firs dealer turned me down and the second dealer took it. If you have more time you can start at $100 below their cost and float that to each dealer and go to each dealer in your area with a little bit higher offer until you get them to accept it. They will try to tall you about advertising "fees" and such, just say no. [/ QUOTE ] IGNORE EVERYBODY ELSE AND DO THIS ^^^ FIRST! Consumer reports new car pricing service I have done this multiple times, the last was to purchase a new 06 Accord. I got the price from the above link, added $150 on it, walked into a dealership, and got a salesman who knew an easy sale when he saw it. Me: I want that car (loaded) for $xxx. I know this is what you paid (showed him report). Him: Let me talk to my manager (5 minutes). Deal. If you go at the end of the month or year, this will be even easier. They want to make those quota bonuses. |
Re: Car buying tips
[ QUOTE ]
I've learned that I can do all the research and have everything thought out, but when I get there in person I still suck at negotiating. So I've swallowed my pride. I have one or two friends who are really good at negotiating who I enlist to work out the actual deal for me on any large purchase. Then I'll buy dinner or a case the beer for our next get together. For some people that might be the best option. [/ QUOTE ] this is a very good tip, Im a lot like u but I have a few friends that can just really good at persuading people and such, maybe I should do as u do [img]/images/graemlins/grin.gif[/img] |
Re: Car buying tips
[ QUOTE ]
I have one or two friends who are really good at negotiating who I enlist to work out the actual deal for me on any large purchase. Then I'll buy dinner or a case the beer for our next get together. For some people that might be the best option. [/ QUOTE ] I brought such a friend with me once while car shopping. I found a used car I liked, the dealer was asking about $17k. When she got him down to $14k, I was tickled. I was reaching for the pen to sign. She wasn't finished with him, though. She was shooting for $12k. When the salesman refused to go lower than $12,200, we pulled the old "Walk out and let them call you back" move. I was pissed. I wanted to pay $14k, and I certainly didn't want to walk away from $12,200. The salesman AND the sales manager came outside to chase us down, and the sales manager agreed to $12k if it would get the deal done. NO WAY I would've even got that car for $14k if I had gone alone. |
Re: Car buying tips
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They will try to tall you about advertising "fees" and such, just say no. [/ QUOTE ] I've been meaning to ask about these. When they draw up the sales agreement, they add up a column of numbers. The top number is the price of the car. The other numbers are such things as the extended warranty, the options, the tag and title fees, etc. There's always an "advertising" fee there, usually $100-300. And the number is not written in by the salesman, it is already typed on the form. Is this number negotiable? Can you draw a line through it, change it to zero, and insist, "I'm not paying that."? |
Re: Car buying tips
[ QUOTE ]
[ QUOTE ] They will try to tall you about advertising "fees" and such, just say no. [/ QUOTE ] I've been meaning to ask about these. When they draw up the sales agreement, they add up a column of numbers. The top number is the price of the car. The other numbers are such things as the extended warranty, the options, the tag and title fees, etc. There's always an "advertising" fee there, usually $100-300. And the number is not written in by the salesman, it is already typed on the form. Is this number negotiable? Can you draw a line through it, change it to zero, and insist, "I'm not paying that."? [/ QUOTE ] When I bought a car I told them I wasn't going to pay that. They said they didn't know if they could work around that. They kept me waiting an hour, came back and asked if I would pay it and when I said no they took it off. This was at a dealership that is local to you. |
Re: Car buying tips
My personal experience is that going through the internet is close to rock bottom. I hate to negotiate. For those who like to haggle, I'm sure this is incorrect. If you're prone to getting ripped off due to impatience, the 2 or 3 thousand this saves is pretty palatable.
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Re: Car buying tips
[ QUOTE ]
My personal experience is that going through the internet is close to rock bottom. I hate to negotiate. For those who like to haggle, I'm sure this is incorrect. If you're prone to getting ripped off due to impatience, the 2 or 3 thousand this saves is pretty palatable. [/ QUOTE ] Internet shopping is great if you are buying new. There is a set manufacturers invoice that all dealers pay. Most sales reps prefer to switch this customer to used so we can make a little money. Used is much harder to price shop. |
Re: Car buying tips
Find out how much all the extras cost on the car. And I mean everything down to the doorlights. Edmunds.com used to have all that info. Basically, you checked all the stuff you wanted, it totaled it up and then you decide how much over that price you want to go. Which was usually about $400. Also note if there are any dealer kickbacks/incentives as you can also use that to lower the price.
[ QUOTE ] Next time I'd like to go in and own the son of a bitch who's haggling with me. [/ QUOTE ] Edmunds also used to have a template for what the dealers would ask you and how to respond. Let me tell ya, it worked like a charm. It was almost too easy. They actually acted and reacted exactly how the thing said they would while giving you the counters for their acts. Fun actually, to see the salesperson squirm.(I got to literally see it. [img]/images/graemlins/grin.gif[/img]) It goes all the way down to the finance guy and what to say to him. Basically, you can really piss him off and he still won't want to blow the deal because then he has to answer to the salesman and salesmanager. My finance guy was exasperated when I got done with him and he tried to use some pretty moronic crap on me(like acting like he was calling the manager and pleading my case about the interest like he was my bud). My bud that I went in there with was thoroughly entertained. If I get time, I'll try to find the link to that template. It was a few years ago. b |
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Re: Car buying tips
[ QUOTE ]
[ QUOTE ] Go to the Consumer Reports website (I don't have the link in front of me). Pay them $12 (it might have gone up, I last used it in 2004) for a price report on the car you are interested in. It will tell you the actual dealer cost (including holdbacks) on the the car you are looking for. Now decided how much yout time is worth. If you offer them $500 above their cost (that might be less than invoice) they will probably take it. My last car I offered $450 above their cost and the firs dealer turned me down and the second dealer took it. If you have more time you can start at $100 below their cost and float that to each dealer and go to each dealer in your area with a little bit higher offer until you get them to accept it. They will try to tall you about advertising "fees" and such, just say no. [/ QUOTE ] IGNORE EVERYBODY ELSE AND DO THIS ^^^ FIRST! Consumer reports new car pricing service [/ QUOTE ] Any difference between the prices on the Consumer Reports service and http://www.edmunds.com/ (which is free)? |
Re: Car buying tips
[ QUOTE ]
[ QUOTE ] My personal experience is that going through the internet is close to rock bottom. I hate to negotiate. For those who like to haggle, I'm sure this is incorrect. If you're prone to getting ripped off due to impatience, the 2 or 3 thousand this saves is pretty palatable. [/ QUOTE ] Internet shopping is great if you are buying new. There is a set manufacturers invoice that all dealers pay. [/ QUOTE ] Not exactly. The dealers receive “holdback” on the MSRP or invoice price. Basically it is a percentage of the sticker price paid back to the dealer by the manufacturer. It’s invisible to the consumer but when negotiating and the salesman says he’s “giving” it to you almost at invoice, just ask how much of a holdback he’s receiving and watch him blanch. http://www.edmunds.com/advice/incent...ack/index.html |
Re: Car buying tips
Get an independent broker to get you the best deal.
Whoever is financing you should have some contacts in this regard. |
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